Home / What we buy / Second mortgage or HELOC
Two mortgages, one house, one closing
A second mortgage or a HELOC turns a manageable payment into two, and when the second one goes into default it can behave very differently from the first.
The good news is mechanical: both loans are paid off at closing out of the sale proceeds, in order of priority, and the title company coordinates the payoff letters and the lien releases. You do not have to negotiate with two lenders yourself — you hand a title company one closing and they handle the rest.
The thing to watch is whether the second lien is already in default or has been charged off, because those payoffs take longer to obtain and sometimes involve a collection agency rather than the original bank. That does not stop a sale, but it does affect the calendar, so it needs to be identified at the start rather than the week before closing.
If the two balances together exceed what the house is worth, a sale cannot pay everyone and the shortfall has to be dealt with separately — usually with the lender. We will tell you that plainly on the first call instead of letting you spend a month assuming otherwise.
What we look at before quoting a number
- The balance and status of each loan, first and second
- Whether the HELOC is drawn, open, or frozen
- Whether either lien is in default, charged off, or with a collector
- Tax liens or HOA liens that sit behind or ahead of the mortgages
- Total payoff against realistic value — in other words, real equity
How a cash sale solves this
There is no listing period, no showings, no repair requests and no buyer whose mortgage can collapse three weeks in. You get one written number, a title company that handles the paperwork, and a closing date you choose — typically fourteen to thirty days from acceptance.
If getting a real number for the property would help you decide — even if you are months away from doing anything — ask for one. It costs nothing and there is no obligation.
Talk to us: (307) 309-8588 — Mon-Sat 8am-8pm. Or send the form and we’ll come back to you.
Get your cash offer
No fees. No repairs. No obligation. Takes about 30 seconds.
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Second mortgage or HELOC — common questions
Do both lenders have to approve the sale?
They do not approve it, they get paid by it. The title company orders payoff statements from each and clears the liens at closing. The only complication is time, and whether any of the payoffs are with a collection agency.
Can I sell with a HELOC still open?
Yes. It is paid off and closed at the same time as the first mortgage. If you have drawn on it recently, tell us — very recent draws take a little longer for the lender to confirm.
What if the second mortgage is already in foreclosure?
That makes the timeline tighter but not impossible. A second-lien foreclosure can move faster than most people expect, so if you have received a notice, call us the same week rather than the same month.
Other situations we handle
Behind on payments / foreclosure
You’ve fallen behind, or a notice has arrived, and you need an exit before the auction.
Learn more →Job loss & income change
The payment was fine until the income was not.
Learn more →Heirs & title problems
Several names on the deed, liens nobody remembers, and paperwork that cannot be found.
Learn more →Ready for a real number on this property?
One call or one form. A written offer within a business day, and no pressure to accept it.